Yeloe Corporation Sells 400 Shares of Common Stock Being Held

question 50

Short Answer

Yeloe Corporation sells 400 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $60 a share. Yeloe sold the shares for $40 a share. The entry to record the sale is a.
$\begin{array}{llr} \text { Cash } &16,000\\ \text { Loss on Sale of Stock Investments } &8,000\\ \text { Stock Investments } &&24,000\end{array}$

b.
$\begin{array}{llr} \text {Cash } &24,000\\ \text { Gain on Sale of Stock Investments } &&8,000\\ \text { Stock Investments } &&16,000\end{array}$

c.
$\begin{array}{llr} \text { Cash } &16,000\\ \text { Stock Investments } &&6,000\\\end{array}$

d.
$\begin{array}{llr} \text { Stock Investments } &16,000\\ \text { Loss on Sale of Stock Investments } &8,000\\ \text {Cash } &&24,000\end{array}$

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